The 360cities guys also show the feature in action, in case you hadn’t seen it yet. They’re using the camera app with panorama mode on an iPhone 4S, but it should work on an iPhone 4 and iPad 2 as well (feel free to let us know if it does or doesn’t in the comments).

Also note that the panorama feature is apparently quite clunky in its current form, which is probably why it hasn’t been publicly released or touted by Apple yet.

Crunchbase

Overview360 Cities collects, commissions, hosts, and organizes the world's best immersive panoramic photography on the web.
Our goal is to bring 360 VR photography to the mainstream, and create new applications from this geographic data. We aim to cover hundreds of cities with tens of thousands of artistic, high-resolution, spherical panoramas.
As a community, we allow any skilled VR photographer to …